Congress created new agencies to coordinate mobilization, to efficiently manage the relationship between the federal government and private companies, and ensure the efficient use of national resources. The agencies emphasized cooperation between big business and government. Business executives, managers, and government officials staffed the new agencies. The most important of the agencies was War Industries Board (WIB). It was established in July 1917 to coordinate the production of war materials. At first WIB's authority was limited, but problems with production convinced Wilson to expand its powers and got Bernard Baruch to run it. The WIB told manufacturers what they could produce, allocated raw materials, ordered the construction of new factories, and set prices. The most successful agency was the Food Administration. Herbert Hoover was the one in charge. This agency was in charge for increasing food production while reducing civilian consumption. Their slogan "Food Will Win the War - Don't Waste It", Made families conserve their good and grow their own vegetables in Victory Gardens. They had Wheatless Mondays, Meatless Tuesdays, and Porkless Thursdays so that the would have food for troops.
Towards the end of the war, United States spent $32 billion. To fund the war effort, Congress raised income tax rates, places new taxes on corporate profits, and imposed and extra tax on the profits of arms factories. Taxes didn't cover the entire cost of the war. The government also borrowed $20 billion through the sale of Liberty Bonds and Victory Bonds. If you bought bonds you were lending money to the government that would be repaid with interest in a certain amount of years.
Wartime Agencies
Congress created new agencies to coordinate mobilization, to efficiently manage the relationship between the federal government and private companies, and ensure the efficient use of national resources. The agencies emphasized cooperation between big business and government. Business executives, managers, and government officials staffed the new agencies. The most important of the agencies was War Industries Board (WIB). It was established in July 1917 to coordinate the production of war materials. At first WIB's authority was limited, but problems with production convinced Wilson to expand its powers and got Bernard Baruch to run it. The WIB told manufacturers what they could produce, allocated raw materials, ordered the construction of new factories, and set prices. The most successful agency was the Food Administration. Herbert Hoover was the one in charge. This agency was in charge for increasing food production while reducing civilian consumption. Their slogan "Food Will Win the War - Don't Waste It", Made families conserve their good and grow their own vegetables in Victory Gardens. They had Wheatless Mondays, Meatless Tuesdays, and Porkless Thursdays so that the would have food for troops.Towards the end of the war, United States spent $32 billion. To fund the war effort, Congress raised income tax rates, places new taxes on corporate profits, and imposed and extra tax on the profits of arms factories. Taxes didn't cover the entire cost of the war. The government also borrowed $20 billion through the sale of Liberty Bonds and Victory Bonds. If you bought bonds you were lending money to the government that would be repaid with interest in a certain amount of years.